Industry 4.0, also sometimes referred to as Industrial Internet of Things (IIoT) or smart manufacturing, marries physical production and operations with smart digital technology, machine learning, and big data to create a more holistic and better-connected ecosystem for companies that focus on manufacturing and supply chain management.
Industry 4.0 is used interchangeably with the fourth industrial revolution and represents a new stage in the organization and control of the industrial value chain.
Enterprise Management Process refers to the way Businesses and Enterprises systematically organizes and implements all their activities in order to align them with Organizational goals and objectives and maximize integration across different functions and Processes.
In context, we are looking at how Industry 4.0 has supported and improved the Enterprise Management Process for Businesses, Companies and Organizations.
Technology and IT, as we all know has largely improved and changed the way we do things, in production and manufacturing, task execution, information and communication, intelligence, research, new product development and Business Management Processes, among others. New innovations have therefore come up and have supported and improved the Enterprise Management Process.
Illustrated below are some of the focus areas of Industry 4.0 that have impacted EMP and how they’ve contributed to the Improvement of Business Management Processes.
Big Data Database Technologies.
Big Data database systems are used in many fields of analysis of large data sets and support business management processes, among others by supporting processes carried out in Business Intelligence framework.
Currently, Business analytics uses computerized platforms containing ready-made reporting formulas in the field of Business Intelligence. In recent years, software companies supporting enterprise management offer advanced applications of information-analytical Business Intelligence class systems consisting of modular development of these systems and combining business intelligence software with platforms that use data warehouse technology, multi-dimensional analytical processing software and data mining and processing applications.
Big Data Database Software Applications allow Entrepreneurs and Corporate managers as well as entities from the SME sector on the one hand to use embedded patterns of reports or analyzes, and on the other hand to self-develop and configure analyzes carried out, tailored to the specifics of a specific entity. Such analytical applications make it possible to build integrated risk management systems in the organization. A combination, therefore of such Applications across various Business lines enable efficient data and information management and processes which support effective Enterprise Management.
Cloud computing is changing how products are designed; enabling closer collaboration between the corporate IT Department and other Business units, including sales, finance and forecasting; and fostering more customer interaction, and jointly developing products with consumers.
In particular, new ways of writing and deploying software have encouraged new types of faster- acting organizational designs. For example, “Cloud native” Software approaches emphasizes ease of use and low-impact alteration of components of any given software application.
As cloud technology improves, it is becoming easier for companies to create products and services within the cloud, or model new products or marketing campaigns as cloud-based software prototypes. The cloud is also a common repository for the collection and analysis of new data, and the place where an increasing number of artificial intelligence operations, like image and speech recognition, are conducted.
An example of a Company that has largely employed and benefited from Cloud Computing is Uber. It has stressed the importance of its hybrid cloud model to ensure not just constant uptime, but an indivisible relationship between product development and deployment. Uber is able to model a virtual fleet of taxis from private cars through a combination of mobile software, large-scale data analysis, mapping, and social networking. Today, more and more organizations are procuring their information technology through “The Cloud“. This all together highlights how Cloud Computing is improving Business Process Management, supported through those Cloud based Applications.
The Internet of Things (IoT)
IoT refers to a network of connected devices collecting and exchanging data over the Internet. These things can be artificial or natural, and interact as autonomous agents forming a complex system.
IoT devices record and transfer data to monitor important processes, give us new insights, boost efficiency, and allow companies to make more informed decisions. They tell organizations what’s really happening, rather than what they assume or hope is happening. And the reams of data they gather are grist to the mill for analytics and AI systems, which can identify patterns of use or behavior that were previously hidden.
Today, The IoT market – which includes hardware, software, systems integration, and data and telecoms services – is expected to grow to $520 billion by 2022. That figure represents a more than 100 percent rise on the $235 billion spent in 2017. More companies are running proof of concept trials than two years ago. And the number of enterprise customers considering exploring new use cases is up to 60 percent in 2018, compared with less than 40 percent in 2016.
According to Andrew Hobbs, IoT has improved the Business Management Process in 5 major ways:
Artificial Intelligence (AI) is the simulation of human intelligence processes by machines and computer systems. AI needs to be deployed to ensure Business Processes are optimal.
The application of AI in the Enterprise is profoundly changing the way Business work. Companies are incorporating AI technologies into their Business Operations with the aim of saving money, boosting efficiency, generating insights and creating new markets.
Artificial intelligence invariably conjures up visions of self-driving vehicles, obliging personal assistants, and intelligent robots.
Enterprise Cognitive Computing (ECC) — the use of AI to enhance business operations — involves embedding algorithms into applications that support organizational processes. ECC applications can automate repetitive, formulaic tasks and, in doing so, deliver orders-of-magnitude improvements in the speed of information analysis and in the reliability and accuracy of outputs. For example, ECC call center applications can answer customer calls within 5 seconds on a 24-7-365 basis, accurately address their issues on the first call 90% of the time, and transfer complex issues to employees, with less than half of the customers knowing that they are interacting with a machine.
According to MIT Sloan Management Review, AI and ECC have brought about 5 crucial capabilities that support and improve Enterprise and Business Management Processes. These include:
Business Intelligence (BI) leverages software and services to transform data into actionable insights that inform an organization’s strategic and tactical Business decisions.
In the past, Business decisions were often based on prior experience, accumulated knowledge or intuition. Today, Business Intelligence tools have replaced management by gut feeling with data-driven decision-making. BI combines data analysis, data visualization and reporting capabilities to uncover actionable information and deliver it to executives, managers and other Business users.
According to Craig Stedman, Enterprise BI helps guide both operational decision making and strategic planning in an organization. BI Applications generate insights on business performance, processes and trends, enabling management teams to identify problems and new opportunities and then take action to address them. This results in more efficient and productive business operations, more effective marketing, competitive advantages over industry rivals and, ultimately, higher revenue and profits.
Internet of Everything (IoE) is the intelligent connection of people, process, data and things. IoE describes a world where billions of objects have sensors to detect, measure and assess their status; all connected over public or private networks using standard and propriety protocols.
According to G. Corlis and V. Duvvuri, The Internet of Everything (IoE) is becoming a major disrupting force that is driving new opportunities and business models across many industries. Businesses now have access to new customers and enterprise data that were not previously available. This new data enables organizations to understand customer behavior and preferences in a more customized and granular manner, develop innovative products and services, re-engineer processes and operations in a more efficient and scalable way. They are driving the evolution of new business and operating models that scale beyond seemingly unrelated organizations and industries.
The internet of everything (IoE), connecting people, organizations and smart things, has fundamentally changed how we live, work and interact, and it may redefine a wide range of industry sectors.
According to Phillip Gerskovich, increasingly, the bulk of work happens outside the four walls of an organization, but this is an opportunity to drive business efficiencies. The IoE is bringing us into a new industrial age where physical objects are being converted into virtual digital objects, an “Avator”. The concept of the Avator drives our approach to the IoE at companies and organizations today, and has had a tremendous impact on the economy. This transformation has yielded the introduction of new business models and revenue generating opportunities based around the “Pay per use” model and “Cloud as a Service”. We are going to see more predictive and pre-emptive intelligence and services, which will help improve efficiency and productivity, as well as generate new sources of revenue.
Compiled and Written by Insights Team, Muyobo Consult Uganda.